Transcript Proposal Development and Submission

THE PROPOSAL BUDGET
What is the funding mechanism?
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Grant  Used when the sponsor and university have common
goals – basic research, arts, public good. May require cost
sharing. Budget revisions between existing budget categories
typically allowed up to 10% of the overall project award.
Contract  For the sponsor’s benefit. Has specific
deliverables. Strict spending guidelines. Should never require
cost sharing (including a reduced F&A rate).
Cooperative Agreement  Basically a grant with a high level
of sponsor involvement – scientific and programmatic. Budget
revisions frequently don’t require sponsor approval except for
specific items (subcontracts, participant support costs, etc.).
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Review the RFP or other proposal guidelines for budget restrictions.
Example: many federal agencies don’t fund food costs except in specific
circumstances. USDA won’t pay for tuition even on graduate assistants.
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Is the budget developed from statement of work or is the statement of work
developed from the budget?
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Do not include costs that do not directly benefit the completion of the
statement of work.
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Request funds allowed under various budget categories and in amounts
required by the scope of work.
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Try to include all reasonable budget categories --- even for minor amounts
--- it will make budget reallocations easier.
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Normally need a budget for each year and a cumulative budget
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Make sure the budget narrative agrees with the budget itself!
Specific Budget Categories:
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Salaries and wages
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Cannot augment total salary or rate of salary (cannot receive more than
base pay without specific sponsor approval). Meaning: no
supplemental salary is allowed without specific sponsor approval.
NSF Grants – Salary typically limited to no more than two months of
salary support from all NSF grants (includes summer salary).
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Administrative support normally cannot be requested (See Exhibit C of
OMB Circular A-21 for potential exceptions to this rule)
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Use current or estimated salary for each project period
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Estimate annual or merit raises
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Academic year for nine-month faculty and calendar months for twelvemonth personnel
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Fringe benefits
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Visit Sponsored Program Administration’s website for current rates
(http://www.spa.msstate.edu).
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Different rates for different personnel
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Graduate Assistant tuition is normally included here. However, on
NSF budgets it is placed in “other direct costs.”
Travel
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Specify reason for travel (how it is related to the statement of work?)
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Itemize by destination and cost
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May be requested for
 Field work
 Attendance at project related meetings
 Travel associated with proposed work
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NSF Participant support
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Transportation, per diem, stipends and other related costs
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Must enter number of participants to be supported in budget
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Indirect costs (F&A) not allowed on participant costs on NSF
projects
Contractual Services
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Consultants
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Shipping costs
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Research software
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Registration fees for meetings
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Long distance service phone charges
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Printing charges
Commodities (Materials and supplies)
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Lab supplies
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Office supplies -- typically not allowed
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Food -- sometimes allowed (non-travel status)
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Group business meals while on travel status.
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Expendable equipment (unit cost of <$5K). Careful! Laptops, etc.
are not typically allowable since they are traditionally considered
general purpose items…..i.e. not dedicated for use on this project.
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Equipment
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Determine if equipment purchases are allowed
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MSU generally classifies items as non-expendable equipment if the
individual unit has an acquisition cost of $5,000 or more. This is not to
be confused with the inventory threshold!
Subawards
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Not the same thing as a vendor purchase!
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Subawards are used when responsibility for a portion of the statement of
work is to be delegated to another entity.
Indirect costs
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Also called overhead or Facilities and administrative costs (F&A)
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On-Campus or Off-Campus?
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Research, Instructional or “other”?
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Can charge F&A only on 1st $25K of each subaward.
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No F&A on tuition or equipment. If project is off campus in a rented
facility and rent is being charged to the project, no F&A is allowed on
the rental charges.
Cost sharing
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Check agency or specific RFP requirements
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Cannot use other federal dollars as cost sharing
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Difference between negotiated F&A and sponsor allowed F&A may
sometimes be allowed as cost sharing
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Is it a % of the total budget or a % of the sponsor budget?
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EXAMPLE OF PROPOSAL BUDGET
Effective Dates: August 16, 2012 to August 15, 2013
Salaries and Wages
Annual
Salary (12 % of
Title
months)1 Effort
Professor
120000
10%
GRA
12000 100%
Total salaries and wages:
Jones, Bobbie
Adams, Carla
Year 1
$12,000
$12,000
$24,000
Year 2
$12,600
$12,000
$24,600
Total
$24,600
$24,000
$48,600
$3,982
$4,181
$8,162
0.76%
Total fringe benefits:
$91
$4,073
$91
$4,272
$182
$8,345
$484.00
$5,808
$6,098
$11,906
Fringe Benefits2
Faculty
3
Students
Tuition
33.18%
4
per GRA per month
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EXAMPLE OF PROPOSAL BUDGET – C
ONT’D
Year 1
$2,360
Year 2
$2,360
Total
$4,720
Contractual
$1,000
$1,000
$2,000
Commodities (chemicals, parts, etc.)
$2,000
$1,000
$3,000
$30,000
$25,000
$55,000
$30,000
$0
$30,000
$60,000
$25,000
$85,000
$12,000
$0
$12,000
Travel (see below for details)
Subcontracts:
University of Hawaii
Aloha University
Total subcontracts:
Equipment
Two research widgets at $6000 each
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EXAMPLE OF PROPOSAL BUDGET –
Total Direct Costs
F&A at 44.5% (on-campus research rate) on MTDC5
Total Project Cost
Year 1
$106,241
Year 2
$69,330
Total
$175,571
$37,128
$14,788
$51,916
$143,368
$84,118
$227,487
CONT’D
¹Faculty salary was converted to 12 month rate. Review the sponsor budget form & instructions to determine how
the sponsor wants it displayed. Raises can be included at 5%-7% effective July 1 for 12 month employees and
effective August 16 for 9 month employees. However, typically raises will only be granted if IHL approves a
university wide raise.
²If the salary budget has a significant portion of employees with >$45K salary, you may want to estimate the
fringes using the details provided at http://www.spa.msstate.edu/budgeting/benefits.html. Note the new retiree
rate.
³ The 0.76% fringe rate for students is valid only when enrolled. During periods of non-enrollment, the rate
increases to ~ 8.41%.
⁴Estimated 5% tuition increase should be included each year effective August 16. College of Engineering uses a
different rate.
⁵F&A is overhead. See the SPA website for off-campus rates as well as service and instruction rates.
MTDC is the acronym for "Modified Total Direct Costs". MTDC is the total direct cost less equipment,
tuition & subcontracts (except 1st $25K per sub).
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EXAMPLE OF PROPOSAL BUDGET – C
ONT’D
Travel Details:
Year 1
Year 2
Total
Annual travel by PI, Dr. Bobbie Jones, to visit with NSF Program Officer
concerning research project. 1 night, 2 day trip to Washington D.C.
Hotel
1 night
Daily rate
$175
Meal per diem
Rental Car
Airfare
Taxi, etc.
2 days
2 days
$40
$50
$175
$80
$100
$850
$50
$1,255
$1,255
$1,255
$2,510
$1,105
$1,105
$2,210
$2,360
$2,360
$4,720
Annual travel by GRA, Carla Adams, to visit with NSF Program Officer
concerning research project. 1 night, 2 day trip to Washington D.C.
Hotel
1 night
Daily rate
$175
Meal per diem
Airfare
Taxi, etc.
2 days
$40
$175
$80
$850
$0
$1,105
Total travel
in support of
project:
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Questions?
Contact info:
Sandy Williamson
Direct #: 5-3573
Email: [email protected]
Lynn Wyman
Direct #: 5-6849
Email: [email protected]
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